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Who Regulates Car Dealerships in California?

  Norman Taylor & Associates
  November 9, 2024

In California, there are laws to protect you from buying a car that breaks down soon after you drive it off the lot. But what happens if a dealership sells you a lemon? To understand that, we first need to know who’s in charge of regulating car dealerships in the state—and why it’s important for lemon law cases.

 

Who Regulates Car Dealerships in California?

In California, car dealerships are regulated by the California Department of Consumer Affairs (DCA) and the New Motor Vehicle Board (NMV).

 

Department of Consumer Affairs (DCA)

When it comes to lemon law, car dealerships answer to the Department of Consumer Affairs (DCA). If you think you bought a lemon under warranty, you can file a complaint with the DCA, separate from any civil claim. This starts a process called the “Arbitration Certification Program.”

In this program, a neutral third-party arbitrator reviews the evidence and decides if the dealership broke the law. It’s free and doesn’t require an attorney, but having one from the start can help your case.

The arbitrator’s decision can be used as evidence if you file a civil claim. If the arbitrator rules against you, it can be harder to prove your car is a lemon later. Hiring a lemon law attorney from the start gives you a better chance of success.

 

What Is the California Lemon Law?

Under California’s lemon law, if a vehicle has defects that the manufacturer can’t resolve after a reasonable number of attempts, consumers may be entitled to a refund or replacement.

 

New Motor Vehicle Board (NMV)

The New Motor Vehicle Board is a subdepartment of the Department of Motor Vehicles (DMV) that has two primary functions: 

  • Dispute Resolution: The board mediates disputes between car manufacturers and dealerships. 
  • Consumer Assistance: It also helps consumers resolve issues with dealerships. 

Claims through the NMV usually involve recreational vehicles, semi-trucks, and motorcycles. The NMV can’t enforce lemon laws; it only mediates to assist both parties in reaching a mutually agreeable resolution. 

 

How to File a Complaint Against a Car Dealership in California

Knowing how to file a complaint can help you seek justice if you’ve encountered issues with a car dealership. Here’s a step-by-step guide on the process: 

 

Step 1: Direct Communication

Before escalating the matter, start by contacting the dealership directly. Make sure to document everything, including the dates, times, and names of the individuals you speak with. Clearly explain your concerns, outline the issues you’ve experienced, and request a resolution.

 

Step 2: Escalate the Issue

If your initial contact doesn’t resolve the issue, escalate the matter. Ask to speak with a manager or a higher-level executive at the dealership. Contact their corporate office if the dealership is part of a larger dealer group.

 

Step 3: File a Formal Complaint

If the issue remains unresolved, you can file a complaint with the Department of Consumer Affairs (DCA), especially regarding lemon law violations. 

As mentioned above, The DCA oversees the state’s lemon law process and can guide you through the steps to file a formal complaint. This can trigger an investigation into whether the dealership sold you a defective vehicle, which may lead to the dealership being required to replace the car or provide a refund.

 

What Are Some Legitimate Reasons for Filing a Complaint?

 

Fraudulent Practices

  • Odometer tampering: An illegal practice that involves altering the mileage on a vehicle to misrepresent its condition. 
  • Undisclosed defects: Selling a car with known issues without disclosure.
 

Poor Customer Service

Subpar service where the dealership fails to address your concerns or provide a satisfactory resolution could be a valid reason to file a complaint.

 

Misrepresentation

Misrepresentation occurs when a dealership provides false or misleading information about a vehicle. This could include: 

  • Advertising a lower price than what’s offered. 
  • Hiding fees or additional costs in the contract.
 

Know Your Options: Contact Our California Lemon Law Firm Today!

Don’t let a lousy dealership experience hold you back! If you have a 2019 or newer lemon car, call 818-244-3905 or contact us today! Our California lemon law firm can help you understand your rights and will ensure you’re taken care of.

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

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